CableLabs, the North American cable television industry's technology center, today announced that a new cable modem from Terayon Communication Systems, Inc. (Nasdaq:TERN) has earned CableLabs(R) Certified(TM) status. Certification ensures that Terayon's cable modem is interoperable with systems that meet the DOCSIS (Data Over Cable System Interface Specification) standard, offering plug-and-play operation with broadband data systems by cable operators.

"We continue to build momentum in the standards process, as vendors such as Terayon receive DOCSIS certification of their cable modems," stated Dr. Richard R. Green, president and CEO of CableLabs. "Terayon has made a notable entry into the DOCSIS process with their 1.0 modem, and continues to support future efforts in developing standards-based cable modem systems."

Terayon CEO Zaki Rakib stated, "We are pleased that our DOCSIS 1.0 cable modem has been officially certified in its first submission for testing by CableLabs. This further reinforces our confidence in Terayon's ability to contribute to the DOCSIS-standards process via innovative, industry-standard broadband access systems. I look forward to a continuing relationship with CableLabs, which will result in the evolution of more advanced broadband access systems."

Terayon's DOCSIS 1.0 cable modem, known as TeraJet(TM), is Terayon's initial DOCSIS-standard cable modem. The company is committed to the development of a broad line of DOCSIS-standard cable modems and headend management systems. Terayon has been working closely with CableLabs over the past year to develop specifications for a next-generation physical layer extension to DOCSIS, which will be compatible with prior-generation DOCSIS-standard systems. Certification of Terayon's DOCSIS 1.0 modem represents an important step in the process, as leading vendors work to enable more cable systems for broadband access.

According to industry analyst firm Dataquest, worldwide cable modem shipments are expected to grow from 846,000 units in 1998 to 4.5 million units in 2002. The certification process is essential in the anticipated broad-based consumer adoption of cable modems.

About Terayon Communication Systems

Terayon's cable modem systems are deployed by leading cable operators worldwide. Terayon's North American customers include Cablevision Systems, Rogers Cablesystems, Shaw Communications, and the TCA Cable division of Cox Communications. Internationally, Terayon has been selected by Europe's largest independent operator, United Pan-Europe Communications (UPC), with systems in 12 European countries; Jupiter Communications, Japan's largest operator; and major cable operators in Europe, Asia and Latin America.

Terayon Communication Systems provides cable operators with reliable, high-capacity cable modem systems that support a full range of broadband services. The company, based in Santa Clara, California, USA, has sales and support offices worldwide, and is traded on the Nasdaq National Market under the symbol TERN. Terayon can be found on the web at www.terayon.com.

About CableLabs

CableLabs is a research and development consortium of cable television system operators representing the continents of North America and South America. CableLabs plans and funds research and development projects that will help cable companies take advantage of future opportunities and meet future challenges in the cable television industry. It also transfers relevant technologies to member companies and to the industry. In addition, CableLabs acts as a clearinghouse to provide information on current and prospective technological developments that are of interest to the cable industry. CableLabs maintains web sites at www.cablelabs.com; www.cablemodem.com; www.cablenet.org; www.opencable.com; and www.packetcable.com.

"Safe Harbor" Statements under the Private Securities Litigation

Reform Act of 1995:

Except for the historical information contained herein, this news release contains forward-looking statements, estimates, and assumptions by the Company and other parties that involve risks and uncertainties, including the Company's ability to gain new business, the expansion of operations by the Company's customers and the deployment of the Company's products in specific markets, as well as the other risks detailed from time to time in the Company's filings with the SEC.

Note to Editors: Terayon, TeraPro, TeraLink and TeraComm are registered trademarks of Terayon Communication Systems, Inc. The Terayon logo, TeraView and TeraJet are trademarks of Terayon Communication Systems, Inc. All other trademarks are property of their respective owners.

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